Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Tyler Durden's picture




 

A little over a month ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom's CFO Andrey Kruglov uttered the magic words (via Bloomberg):

  • GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO

In other words just as the US may or may not be preparing to export crude - a step which would weaken the dollar's reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies - the world's two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback.

But wait, there's more. Because only now does Gazprom appear to be unveiling all those "tangents" that were expected to hit the tape in May. Among Kruglov's other revelations were that Gazprom is in talks on a Hong Kong listing and is weighing the issuance of Yuan bonds. Gazprom is also considering selling bonds in Singapore dollars, the CFO said at briefing in Moscow. Wait, you mean that by alienating and embargoing Russia from western (USD, EUR-denominated) funding markets, it has pushed the country to turn to its pivoting partner, China and thus further cementing the framework for the next Eurasian strategic alliance?

Unpossible

But wait, there's still more, because it is  not just Gazprom. As the PBOC announced overnight,  PBOC Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin led a meeting held yesterday and today in Shanghai.  The meeting discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

In other words, central bankers of China and Russia discussed how to replace the dollar with Rubles and Yuan. From the PBOC:

In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.

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Thu, 06/26/2014 - 08:15 | 4897100 Quinvarius
Quinvarius's picture

As soon as Obama started using the SWIFT system to punish nations, there was no turning back.  Too much international treachery in the Obama admin.  He thinks he is being slick.  He is as slick as anyone else that shits in his dinner before he eats it, just to annoy everyone else with the smell.  He doesn't understand power.

Thu, 06/26/2014 - 08:25 | 4897119 Azannoth
Azannoth's picture

Never give a Monkey a loaded Gun or the keys to the World Financial System, no matter how well it can read a Teleprompter!

Disclaimer: (this is not a racially motivated comment, and if you think otherwise you are the racist)

Thu, 06/26/2014 - 08:25 | 4897128 DeadFred
DeadFred's picture

No worries, I assumed it was a comment on competence

Thu, 06/26/2014 - 08:29 | 4897135 maxmad
maxmad's picture

This is it, Ladies!!!  Hyperinflation by Labor day???  oh, how ironic..

Thu, 06/26/2014 - 09:03 | 4897235 y3maxx
y3maxx's picture

....Cue WW3 False Flag event in 3...2...1...

Thu, 06/26/2014 - 09:04 | 4897243 SWRichmond
SWRichmond's picture

The US intends to export crude...because the US knows it will need a source of hard currency / forex.  Isn't this obvious?

Thu, 06/26/2014 - 09:17 | 4897274 kliguy38
kliguy38's picture

Obama??????? Anyone suggesting HE is pulling the strings has missed the last 100 years of history!!!! This system is designed to make you focus on Bush Clinton Obama etc etc....... GET A FOCHIN CLUE

 

https://www.youtube.com/watch?v=UjeKWZE9WxA

Thu, 06/26/2014 - 09:22 | 4897298 THX 1178
THX 1178's picture

Damn these hits are coming hard and fast.

Thu, 06/26/2014 - 10:43 | 4897695 Poundsand
Poundsand's picture

Harder and faster...

Thu, 06/26/2014 - 10:53 | 4897732 THX 1178
THX 1178's picture

Hardest and fastest

Thu, 06/26/2014 - 11:16 | 4897828 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I look forward to this. Less USD the US gubimint can borrow.

Thu, 06/26/2014 - 11:54 | 4898051 Herd Redirectio...
Herd Redirection Committee's picture

(George) Bush (Sr), Bill Clinton (+Hitlary) were actually the mob bosses of the country for the last 25+ years.

They were working on the behalf of others as well (MIC, Banking, energy business, drug running, etc.) but Bush Sr and Bill Clinton were not merely the puppet figureheads that Jr and Obama are.

Thu, 06/26/2014 - 12:03 | 4898089 Jack Napier
Jack Napier's picture

The Fed has already said to expect rising interest rates. This seals it, because now all those petrodollars will not be exporting inflation to other nations who don't need to transact with them. The consequences of QE are coming home to roost. Get ready for the next round of Volckerball. Interest rates are going to go much higher in an attempt to keep the QEnie in the bottle, except this time there's unprecedented debt tied to those rates. Counterparty risk is about to matter.

Thu, 06/26/2014 - 12:33 | 4898249 Bananamerican
Bananamerican's picture

Fuck...shits gettin' real among the satan classes

Thu, 06/26/2014 - 13:27 | 4898488 7.62x54r
7.62x54r's picture

And so it begins ...

Thu, 06/26/2014 - 15:08 | 4899130 ninja247
ninja247's picture

3   2    1   

Thu, 06/26/2014 - 23:51 | 4901075 MontgomeryScott
MontgomeryScott's picture

The hardest part is trying to make sense of the fracking alphabet that the Chicoms use. It looks like little drawings of paper houses and weird shit like that. It seems to me that a culture that is so 'well-versed' and 'cultured' for all those millenia would have figured out how to adopt the characters of the fracking ALPHABET (that is obviously 'beneath them', because it was a bunch of Mohammed-loving Arabians that came up with it, along with the mathermatical concept of 'ZERO').

WELL, the Japanese do the same thing, I suppose, and they almost kicked the CONUS' assets once. WTF is it with the hatred between the Chinese and the Japanese, anyway? Those people might as well be SHI'ITES and SUNNIS; trying to kill each other! It's like the inhabitants of JAVA and SUMATRA!

The fiat control of the 'settlement of trade between nations' seems to be the method of control of the populace throughout the world; don't you think?

Thu, 06/26/2014 - 21:58 | 4900757 Grams Gold
Grams Gold's picture

According to Peter Schiff, the Fed will not be inclined to raise interest rates until inflation is at some unimagineable number. That if interest rates are raised, it will collapse the stock and real estate markets.  He says they will lie to us and say that the inflation is actually a good thing. They probably won't disclose the real interest rates, much like they are doing now.

Food is at a 22% inflation rate just for the first quarter of 2014, yet they are stating current inflation rates around 2%. I believe we will see very high inflation before the Fed raises rates. It's not in THEIR best interests, which, after all, is all that matters. Hear what Schiff recently said about the Fed raising interest rates here: http://www.gramsgold.com/blog/inflation-is-now-only-going-to-get-worse

Thu, 06/26/2014 - 12:48 | 4898305 El Vaquero
El Vaquero's picture

"I look forward to this. Less US gubimint."

 

Had to fix it for you.  That is the end result.  Just watch out for those who would shove potatoes into their crotches pining for power.  (Dick-taters)

Thu, 06/26/2014 - 13:05 | 4898389 fishmonger
fishmonger's picture

Harderest and Fasterest.

Thu, 06/26/2014 - 12:41 | 4898239 Kirk2NCC1701
Kirk2NCC1701's picture

@THX1178: "Damn these hits are coming hard and fast."

Why do I think of Zappa's "Bobby Brown", when I think of O?  Here are the lyrics, slightly modified by Kirk:

 

Hey there, people, I'm Bobby Brown
They say I'm the cutest goy in town
My car is fast, my teeth is shiny
I tell all the goys they can kiss my Hinie
Here I am at a famous school
I'm dressin sharp n I'm acting cool
I got a cheerleader here wants to help with my paper
Let her do all the work and maybe later I'll 'ape her

Oh God I am the American dream
I do not think Im too extreme
An I'm a handsome sonofabitch
I'm gonna get a good job and be real rich

(Get a good
Get a good
Get a good
Get a good job)

Financial liberation
Came creepin across the nation
I tell you people I was not ready
When I phucked this dyke by the name of Feddie
She made a little speech then,
Aw, she tried to make me say when
She had my balls in a vice, but she left the dick
I guess it's still hooked on, but now it shoots too quick

Oh God I am the American dream
But now I smell like vasall-ene
An I'm a miserable sonofabitch
Am I a boy or a lady...i don't know which

I wonder wonder, wonder, wonder

So I went out n bought me a leisure suit
I jingle my change, but I'm still kinda cute
Got a job doin community promo
And none of the dicks can even tell I'm a homo
Eventually me and a friend
Sorta drifted along into S&M
I can take about an hour on the Tower of Power
As long as I gets a little golden shower

Oh God I am the American dream
With a swindle up my butt till it makes me scream
An I'll do anything to get ahead
I lay awake nights sayin, thank you, Fed!
Oh god, oh god, Im so fantastic!
Thanks to Feddie, Im a financial spastic
And my name is Bobby Brown
Watch me now, I'm goin down,
And my name is Bobby Brown
Watch me now, I'm goin down.

I knew you'd be surprised!

Thu, 06/26/2014 - 16:57 | 4899673 KrugerrandFan
KrugerrandFan's picture

Same as that kirk!

Thu, 06/26/2014 - 09:24 | 4897304 TahoeBilly2012
TahoeBilly2012's picture

Western leaders are not leaders at all, Reagan showed us that. They media stars, actors at best. They don't control a thing.

Thu, 06/26/2014 - 10:00 | 4897484 Troll Magnet
Troll Magnet's picture

Yup. The Jews have been out to ruin America and their biggest threat, the Aryan race, for decades. They're just using a black puppet to do the job on their behalf now.

PS. I'm not a member of the Aryan race, so fuck off, Jews and liberals. I am just an astute observer.

Thu, 06/26/2014 - 10:29 | 4897617 Save_America1st
Save_America1st's picture

"In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency."

It was and has been always by design.  If the globalists in power could have done it sooner with GW or another president then they would have done it.  Obama is just the latest in the line of wannabe globalist puppets with a deep Marxist ideology perfectly chosen and trained to do the bidding of the globalists who hate America and want to bring us down and all other free people down to our knees.

It's only going to get worse before it ever has a chance to get better.  Keep preparing, keep stacking, keep aware and keep your head on a swivel, because they're hitting us full force with almost everything they've got from every direction as this point just short of an all out war on American soil.

I think they'll hold off using nukes or deadly pandemic-level bio-weapons on us unless we somehow succeed in holding them back from using an economic and societal collapse in order to bring in Martial Law against us to mop up the resistance.  If they can't beat us that way then they'll go full-retard against us and hold nothing back.  It'll all be out in the open then, but they won't care because they will blatantly want to totally destroy all of us at that point at all costs. 

Thu, 06/26/2014 - 10:40 | 4897678 doctor10
doctor10's picture

What they truly hate is the US Constitution-and all minds capable of writing it and living it.

That document is the only shackles they have ever known

Thu, 06/26/2014 - 14:55 | 4899051 CuttingEdge
CuttingEdge's picture

Its about time the masses woke up and started defending that much vaunted (but very eroded) constitution against the fuckwits pulling the strings and the other fuckwit they keep out on the golf course. Obama and Co have pissed on it every which way from Saturday, and the USA will never be the great country it once was (in the eyes of outsiders) until it is cleansed of he and all the other parasitic vermin, most notably the next puppet, Hitlery Clitnot.

 

Thu, 06/26/2014 - 15:50 | 4899341 pelican
pelican's picture

Kapow!

 

Everyday I wake up it gets worse.  At least the Supreme Court gave the big dummy a slap down.

 

Thu, 06/26/2014 - 13:12 | 4898421 CH1
CH1's picture

I'm not a...

What you are is a shill for whoever is paying you to troll ZH, cry Jew, and waste everyone's time.

Fuck off and die.

Thu, 06/26/2014 - 13:24 | 4898470 Troll Magnet
Troll Magnet's picture

Your Zionist fuckers might be silencing the media but the people are awakening, asshole. The silent majority will not stand your ways much longer.  The clock is ticking, asshole.  The clock is ticking.

Thu, 06/26/2014 - 10:02 | 4897502 IndyPat
IndyPat's picture

To be fair...Reagan sorta did run the show for a while.

They had to unleash that Manchurian prototype to bring him back into the fold. Looks like the Gipper got the message Lima Charlie, too.

A much different man on the other side of that.

Thu, 06/26/2014 - 10:16 | 4897560 CheapBastard
CheapBastard's picture

I ready to watch oil, gold, and other commodities soar as the dollar loses its international status. Inevitable.

Thu, 06/26/2014 - 11:10 | 4897805 Top Gear
Top Gear's picture

You hate America simply because you can't compete effectively in capitalism. Keep wanking to apocalypse porn.

Thu, 06/26/2014 - 11:16 | 4897833 greatbeard
greatbeard's picture

>> you can't compete effectively in capitalism.

How would one know?

Thu, 06/26/2014 - 11:35 | 4897953 Overfed
Overfed's picture

There hasn't been true free-market capitalism in the US since the 1860s.

Thu, 06/26/2014 - 11:52 | 4898042 Son of Loki
Son of Loki's picture

Why do you hate America, Top Gear?

Thu, 06/26/2014 - 13:26 | 4898477 Troll Magnet
Troll Magnet's picture

He doesn't hate America.  A silver eagle says he works for the gov't.  If not, he's mooching off the system.

Thu, 06/26/2014 - 12:29 | 4898223 Citxmech
Citxmech's picture

How exactly does watching gold and oil prices = hating America?

Thu, 06/26/2014 - 13:30 | 4898502 7.62x54r
7.62x54r's picture

Crapitalism does not equal capitalism, statist wanker.

The country hasn't had a free market since Wilson sold us down the river.

Thu, 06/26/2014 - 11:08 | 4897796 Top Gear
Top Gear's picture

Did you get your smarmy Ronnie-Ray-Gun talking points from thinkprogress.org?

The Left like you always hates a strong male figure who is effective.

“Mr. Gorbachev, tear down this wall.” --President Ronald Reagan

And it was so.

Your ilk have hated him ever since.

 

 

Thu, 06/26/2014 - 11:21 | 4897862 JRobby
JRobby's picture

"Your ilk" 

Got your "Craftsman" Tshirt on today? The "Snap On" jacket is out at the cleaners?

The wall coming down was a pre planned event like so many others in the history of the modern ponzi. Ronnie was just saying his lines.

Thu, 06/26/2014 - 12:13 | 4898143 Top Gear
Top Gear's picture

Yep, and got my Lee Greenwood I'm Proud To Be An American cranked up too.

I see that smirk on your face. The same smirk as any Marxist.

"This is no surprise, as libertarianism is basically the Marxism of the Right...Like Marxism, libertarianism offers the fraudulent intellectual security of a complete a priori account of the political good without the effort of empirical investigation. Like Marxism, it aspires, overtly or covertly, to reduce social life to economics."  --Robert Locke, Marxism of the Right, The American Conservative, March 14, 2005

Thu, 06/26/2014 - 12:26 | 4898209 IndyPat
IndyPat's picture

To quote the wise and concise Volkodav...

"Useless talkings"

Thu, 06/26/2014 - 12:27 | 4898212 JRobby
JRobby's picture

Yea, seems like you got me all figured out all right,

Thu, 06/26/2014 - 12:42 | 4898281 Citxmech
Citxmech's picture

That left/right false dichotomy can be a bitch.

Thu, 06/26/2014 - 13:19 | 4898454 Transformer
Transformer's picture

Left, Right, what's the difference?

This Left-Right paradigm concept theorizes that the two opposing political parties utilize their tremendous hold over mainstream media to dramatize political distractions and engage in covert warfare and operations, in grand performances of bureaucratic rivalry meant to propagandize and divide the populace. Divisive issues are purposefully fed through the major media outlets to divert attention away from the ruling class's hidden and ulterior (and sometimes global) agendas. By drawing attention to the differences between the two embedded political systems, ideologies, races and classes, the political groups obscure political clarity and divide unity among the masses. The tactic creates confusion and frustration among the population, which enables the ruling class to increase and consolidate their wealth and power through maintaining an illusion of a two-party system of checks and balances that actually works. The theory contends that the fresh interjection of a new political party or group (such as the expanding Libertarian or Green parties) into the political arena, would be the only way to provide a means to break the cyclical paradigm, currently established in the political system.-- wikipedia

Thu, 06/26/2014 - 13:33 | 4898526 7.62x54r
7.62x54r's picture

Don't you have some Central American welfare rejects to give citizenships to, along with the other Republicans?

Thu, 06/26/2014 - 15:12 | 4899142 rubiconsolutions
rubiconsolutions's picture

"How much wood would a woodchuck chuck if a woodchuck could chuck wood?" -- Anonymous, some unknown date

See, I can use intellectual quotes too. 

Thu, 06/26/2014 - 15:17 | 4899182 El Vaquero
El Vaquero's picture

A more apt quote for the Red Team/Blue Team dichotomy:

 

How much shit would a dip shit dip if a dip shit could dip shit.

Fri, 06/27/2014 - 00:16 | 4901134 Volkodav
Volkodav's picture

depends on the woodchuck...

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